Small Business Loans in Massachusetts


Many small businesses reach a point in their development where they need access to loans to obtain inventory, equipment purchases, expansion or working capital. In this article, we’ll explain options for small business loans, how they work, what the requirements are for a small business loan in Massachusetts and what small business owners should know before applying.

What is a small business loan?

A small business loan is a type of financial assistance that provides capital a business might not otherwise have access to. Rather than miss an economic opportunity for lack of ready funds, the business takes out a loan.

The Small Business Administration (SBA) is known for its loan programs that provide guarantees to lenders to enable them to help small businesses. You might obtain small business loans from banks, online lenders and other institutions.

Another type of business loan, the “commercial loan,” typically refers to products targeted at larger businesses. Whichever you choose, you will be paying back the money plus interest.

Loan options for Massachusetts businesses

The best choice of business loan depends on business needs (or the use of funds), financing needs and annual gross revenue. Some examples:

Lines of credit

Similar to a credit card, lines of credit give you a credit limit and you pay interest only on the amount you borrow. You’ll be able to draw funds as needed, as long as you don't exceed the credit limit

Term loans

You receive a loan amount that you'll pay back at a variable or fixed interest rate. Typically, these are used to fund a specific investment, such as equipment purchases. This type of loan also could be used to buy or refinance commercial real estate, like a new location

SBA loans

The Small Business Administration (SBA) assists small businesses with the SBA 504 loan and the 7a loan programs. An SBA loan is guaranteed by the government and has flexible repayment terms.

TD Bank is a preferred SBA Lender, so its specialists are trained to assist small business owners in completing applications

Considerations for each loan type

When shopping for business loans, keep these factors in mind: 

  1. Variable or fixed interest. Lines of credit typically have a variable interest rate tied to the prime rate, so monthly payments can vary significantly. A loan with a fixed interest rate means a stable monthly payment

  2. Commitment to your success. Look for a lender who has knowledge of local market conditions, wants to establish a long-term partnership, and is dedicated to the success of your business

  3. Term. This refers to the length of time you have to pay the loan back. Term loans for equipment purchases and business expansion typically mature in about 10 years. Some SBA loans, particularly for commercial real estate acquisition, take up to 25 years to mature

  1. Loan amounts. Loans can range from a few thousand dollars to millions of dollars for purchasing inventory, equipment, or real estate, for example

  2. Repayment terms. Unlike consumer credit, some lenders charge a penalty for paying a loan back early. TD Bank charges a prepayment premium only on commercial mortgages

Qualifying for a small business loan in Massachusetts

Before you apply for a small business loan in Massachusetts, officially set up your business by selecting a structure (like a corporation or LLC) and a business name, then file with the Secretary of the Commonwealth. You can find a step-by-step guide on the government’s website; in addition, the Massachusetts Small Business Development Center Network offers an FAQ to help guide you.  

To apply for a loan, you will need the legal business name and address, and the tax ID number. Approval will depend largely on a business plan, time in business, annual gross revenue and personal or business credit score. You may also need to provide articles of incorporation, financials, and business tax returns.

SBA requirements for its 7(a) loan program

SBA requirements for its 504 loan program

How to apply for a small business loan in Massachusetts

There are many lenders for a small business in Massachusetts, all competing for your attention and each with its own application process. In general, the steps are:

  1. Identify your purpose in obtaining a loan (startup, working capital, investment, etc.)

  2. Check your eligibility

  3. Compare lenders

  1. Gather the required documentation

  2. Submit your application

  3. Sign the loan closing documents 

A funding decision may come within hours, or it may take days or even weeks. Given that, it’s best not to wait for a funding crunch before applying.

Options for small business loans offered by TD Bank

Whether you're looking to manage day-to-day expenses, expand your business or obtain real estate financing, TD Bank has small business loan programs and lines of credit to meet a variety of needs.

TD Bank is also an SBA Preferred Lender and we can review your application for additional SBA guaranteed options. TD is the No. 1 SBA lender by units along the East Coast and has the experience to help your company find the right lending solution.

A lender that understands your business is crucial to helping you get the financing that you need. TD Bank has lenders available in every store location, as well as regional lending offices to help you prepare for submitting a loan application. To find a lender in Massachusetts near you, please visit TD's Store Locator.

You can also apply online for up to $250,000. If you need a loan or line of credit for more than $250,000, a TD small business specialist can help you apply for a small business loan today.   


  • TD Merchant Solutions

    Manage and grow your business with customized payment services featuring Clover®

  • TD Bank Healthcare Practice Solutions Group

    Grow your practice with help from our customized finance and banking solutions

  • TD Business Solutions Credit Card

    Earn 2% Cash Back Rewards on everyday business purchases

  • TD Online Accounting

    Send online invoices, accept credit or debit cards and ACH payments, streamline accounting and track everything all in one place


All loans subject to credit approval.  Origination fee waiver applies to Conventional and Healthcare Small Business Term loans up to $1,000,000 and is available for qualified applicants that maintain an active TD Bank Business Checking account from which loan payments will be auto deducted.  Origination and Packaging fee offer does not apply to TD Business Lines of Credit and Commercial Mortgages.

For SBA Express Term Loans up to $500,000 and SBA 7(a) loans up to $5,000,000, TD Bank will waive up to $2,500 of the SBA packaging fee for qualified applicants that maintain an active TD Bank Business Checking account from which loan payments will be auto deducted.

Have a question? Find answers here